What is the Minimum Amount to Invest in Bitcoin?

The high-profit margin associated with Bitcoin (BTC) investment has prompted widespread adoption of the asset. People who once considered BTC as passive income are now active investors. 

With BTC’s outstanding performance over traditional assets like gold, stocks, shares, and commodities, several conventional investors are delving into the industry, with some still trying to figure out what it takes to get involved with the asset.  

One of the major questions crypto newbies have repeatedly asked is: what is the minimum amount of Bitcoin prospective investors can purchase. 

Interestingly, there is no minimum or maximum amount of BTC investment. 

Regardless of your financial status, you can delve into bitcoin investment by buying just a fraction of BTC known as sats (named after the asset’s pseudonymous founder Satoshi Nakamoto). 

Based on Bitcoin’s design, there are 100 million Sats in 1 BTC, and investors can purchase as little as a fraction of BTC, illustrated as 0.00000001 BTC. 

According to the current market rate, 0.00000001 BTC is being exchanged at $0.00027. 

However, the value seems so insignificant that cryptocurrency exchanges will not process such a transaction due to certain reasons. 

Given this, certain factors influence the minimum amount you can invest in bitcoin, and they include: 

  • Cryptocurrency Exchanges 

The minimum amount of BTC you can purchase varies across exchanges. Although investors can acquire a fraction of bitcoin, exchanges have the right to decide their minimum BTC purchase. 

While some exchanges may allow users to buy $2 worth of BTC, others may require users to make a minimum bitcoin purchase of less than $1. 

  • Transaction Fees

Regardless of the price a trading platform sets as its minimum bitcoin amount, investors should consider the transaction fees. 

Trading fee is one of the major sources of income for crypto exchanges, and there is no benchmark fee for exchanges. 

Some trading firms can choose to charge as high as 5% of your investment, while others may charge a lower fee of less than 1%. 

Based on fee variation, investors should conduct due diligence to select a trading platform that offers the best competitive fees. 

  • Risk Appetite 

The crypto market is highly volatile. A coin’s value might spike by more than 70% in less than an hour, and the next minute, it has plummeted by a large margin. 

Due to the high volatility of the crypto market, investors are urged only to invest an amount they can afford to lose. The minimum amount one can invest in BTC varies based on the individual’s risk appetite. 

A trader may consider $1,000 as his minimum BTC investment without exercising any fear, while someone else may be scared of his $10 capital because of a mere cryptocurrency news headline.

  • Profit Oriented 

This is one of the factors that influence users’ minimum BTC purchase. The higher an investment, the higher the gains, and vice versa. 

Certain people may be motivated to commit large amounts of funds when making bitcoin purchases, with the hope of raking in lots of profit when the asset’s price soars. 

If things do not go as planned and the market becomes bearish, the investor is sure to lose large amounts of his capital. 

  • Location 

Since not all crypto exchanges work in all jurisdictions, the minimum amount of BTC you can purchase varies according to where you are located. 

For instance, a U.S.-based exchange with a minimum bitcoin amount of $1 may be restricted from operating in Nigeria, where most trading firms in the country pegged their minimum amount at $10. 

In some countries like Cuba, where there are few crypto exchanges, bitcoin investments incur a premium. 

Popular Crypto Exchanges That Offers Lower BTC Purchase 

  • Binance 

World’s largest crypto exchange by trade volume Binance is one of the best platforms newbies can purchase BTC. 

The exchange works in several countries, and users are allowed to buy as low as 0.0001 BTC worth around $2.70 at press time. 

Binance has the most competitive fee in the market, as users are allowed to pay a transaction fee of 1.4% for every purchase. 

  • Gemini 

Launched in 2015 by Tyler and Cameron Winklevoss, Gemini is among the best crypto exchanges that support a lower amount of BTC purchase. Gemini users can purchase a minimum amount of 0.00001 BTC ($0.27) while paying a transaction fee of up to 1.49%. 

  • Coinbase 

Coinbase is one of the earliest crypto exchanges. Coinbase users can make a minimum BTC purchase of $25, which attracts a transaction fee of 1.49%.   

Conclusion 

As stated, there is no minimum or maximum amount you can invest in Bitcoin. The least amount of BTC you can acquire depends on several factors, including cryptocurrency exchanges, risk appetite, location, trading fees, and profit. 

It is left for you to carefully examine the factors to determine the minimum amount of BTC suitable for you.  

Why Do Many People Hate Bitcoin

Within a few years since Bitcoin was created, it has managed to gather an army of supporters. These supporters are convinced that Bitcoin has the potential to revolutionize the current financial system.

Nonetheless, there are still many people who hate the concept of bitcoin and have sworn to never invest in the asset. Below are five reasons why many people hate bitcoin.

Five Reasons Why People Hate Bitcoin

  • The anonymity of Bitcoin’s Creator

Bitcoin was created by an unknown person or group of persons under the pseudonym Satoshi Nakamoto. The anonymity of Bitcoin’s creator is often the main reason why many people dislike the cryptocurrency.

Many people feel that they can not trust a technology developed by someone they do not know. Therefore, they discard the cryptocurrency’s merits. 

However, it is important to note that the anonymity of bitcoin’s creator does not affect the performance of the digital asset in any way. This is because bitcoin’s source codes are open source and can easily be verified by anyone on the blockchain.

The anonymity of Bitcoin is also the main reason why it is so successful. The consensus mechanisms put in place ensure that operations carried out on the blockchain satisfy the interest of every participant.

  • Bitcoin’s Intangibility

Many people argue that since bitcoin is not backed by any tangible asset, it has no intrinsic value. The notion is that intrinsic value can only be attributed to physical assets.

Gold is often used as a case study when issues regarding intrinsic values arise. Although bitcoin has many of the properties of physical gold, earning it the nickname “digital gold”, it is not backed by any physical asset and is perceived by many people as lacking intrinsic values.

However, since value is quite subjective since it can be determined by the opinions of people, there is always a high demand for anything deemed valuable by a lot of people.

With that in mind, it will be unrealistic to view bitcoin as an asset that lacks intrinsic value simply because it is not backed by anything. Although bitcoin is intangible, it has a lot of very valuable use cases.

Bitcoins value lies, not in any physical asset, but its utility, network, and adoption. Bitcoin users do not have to go through intermediaries or wait in long lines to complete transactions. Bitcoin can be sent from one end of the world to the other end in a matter of minutes, if not seconds, at incredibly low charges.

Bitcoin transactions are immutably stored in the blockchain ledger which is open and can be verified by anyone on the blockchain. Its scarcity, which is fostered by the fixed supply of 21 million coins, protects it from the risks associated with inflation.

  • Bitcoin’s Extreme Volatility

Volatility is perhaps the major reason why so many people hate bitcoin. The sudden and unexpected changes in the asset’s price are the reason why many people have labeled it a scam.

Bitcoin’s price can quickly rise to high peaks. Investors basking in the euphoria of making profits may be left scratching their heads in losses only a few hours or minutes later. No secret trading tips can protect investors from this tricky Bitcoin feature.

However, it will be unreasonable to judge the credibility of an asset based on its volatility. Any asset traded on a public market is often affected by market dynamics – the forces of demand and supply – and bitcoin is not an exception.

  • Use of Bitcoin For Illicit Activities

This is one of the most prevalent reasons why many people hate the idea of investing in Bitcoin. Some bad individuals in the cryptocurrency industry have taken advantage of bitcoin’s anonymity to commit a lot of crimes. 

Bitcoin has been used to fund terrorist attacks, purchase illegal drugs, and money laundering. Since the identity of the participants conducting transactions on the blockchain is anonymous, they can not be traced to the individuals involved.

However, the activity of a small number of bad eggs in the industry should not be used to evaluate the credibility of the entire cryptocurrency industry. There are several beneficial use cases of bitcoin that overshadow these nefarious activities.

  • Poor Regulation and Network Security 

Although bitcoin and cryptocurrencies, in general, are not the only assets to experience security issues, bitcoin hacks leave users with little to no chances of ever getting their funds back.

Since bitcoin is decentralized, without the need for any central authority, the activities going on in the blockchain are not regulated. This is a huge turn off for many people.

Without any centralized authority to monitor affairs, individuals with questionable intents make use of the network and defraud millions of people. Many of the most popular internet hacks had been carried out on Bitcoin exchanges, resulting in huge losses.

Conclusion

Although Bitcoin has a lot of beneficial use cases, it will always be perceived negatively by those who are ignorant of its potential. It is therefore left for all those in the crypto industry to change people’s negative perceptions of Bitcoin and cryptocurrency in general.

By bringing the usefulness of Bitcoin to the fore and fishing out the bad eggs in the industry, these negative views can be corrected.

CoVEX EXCHANGE

CoVEX — A Single Platform to Complete the Entire Crypto Lifecycle

CoVEX has been emerging as the most comprehensive and easy to use platform for buying a cryptocurrency and using all modern trading services. CoVEX is not just popular for buying, selling, trading but CoVEX aims to become one-stop platform for crypto-exchange with the highest maintain security, user-friendly with reduced downtimes. CoVEX offers the first all in one crypto cryptocurrency exchange platform that incorporates all the features that you would want to see on an exchange platform.

CoVEX- The multi-functional cryptocurrency exchange:

When we talk about a cryptocurrency exchange, all you can think about are the features like buying crypto and trading it. At least this is what we were forced to believe. You will certainly be surprised after finding out that the CoVEX cryptocurrency exchange can do a whole lot more.

CoVEX crypto exchange platform is the complete package. It is no secret that the majority of cryptocurrency exchanges were developed by enthusiasts with only a small fraction of them having the requisite technological maturity to help keep cryptos safe.

“CoVEX Exchange is now live with the most advanced system lowest fee on Buying and Selling your favourite cryptocurrencies.”

CoVEX Exchange Features:

Suitable to All:

CoVEX crypto exchange is suitable for everyone. From a beginner to world class traders, this platform does not fail to impress its audience. For a beginner, the CoVEX exchange will be bringing in a new feature called social trading which allows users to copy every trade a reputed trader makes on the platform. Thus, guaranteeing a winning trade each and every time.

Earn BTC, ETH, USDT and more

The platform also allows its users to earn more crypto just by holding the in-house coin i.e. the CoVEX coin in their wallet. Thus, simplifying the money earning process. These profits are calculated on 50% of the commissions of each transaction that takes place in the exchange and is distributed equally according to the number of tokens that each user has at the time of the distribution. That is, the more CoVEX tokens you are holding on your wallet, the more rewards you will receive in different tokens.

Discount in Buying and Selling

CoVEX, the revolutionary crypto exchange has the perfect solution for saving your money while paying a trading fee. No one likes to pay the trading fees. However, we all need to pay for the convenience that a crypto exchange offers when we start trading. CoVEX has an in-house token called the CoVEX coin which helps all users save trading fees. If you hold 1,000 CoVEX token or more, they provide you 50% discount on trading fee of your buying and selling any cryptocurrency in the CoVEX platform.

CoVEX Referral Program

CoVEX offers you to get up to 15% commission for every successful referral. The inviter will receive the corresponding Referral Bonus from the transaction fee, each time the invitee completes an order. So, for a beginner, this is a gold mine filled with opportunities.

“Our motto is better, faster, stronger and safer because the market needs a crypto exchange which will not fail investors.”

CoVEX Roadmap of future development:

CoVEX exchange will be few platforms that you would require to complete your cryptocurrency investment lifecycle. The platform will integrate several features such as margin trading, social trading, p2p lending, prepaid cards as well as a payment processor. It will be offering its users everything that they ever wanted, in the same place. Thus, giving it an edge of all the existing trading platforms.

  • Social Trading (copy trading): For a beginner or trader who are not active in the crypto but like to take a profit on the growth of crypto, the CoVEX exchange is bringing in a new feature called social trading which allows users to copy every trade a reputed trader makes on the platform. Thus, a winning trade each time by following Top traders at CoVEX.
  • Margin trading: CoVEX will simplifying Margin trading to a very large extent. Most of Margin trading with the house but CoVEX is providing a platform where Margin lenders and Margin can meet. In the CoVEX platform margin lenders can set rates/ratio of leverage and return. They will setup the condition how return & risk can do control.

Unlike traditional margin trading where the funds get liquidated as soon as they breach the margin line, on CoVEX users receive a warning when the value of funds is close to the margin line. Thus, users get an opportunity to add more funds and have a longer position on the funds. Thus, instead of losing everything at once, CoVEX provides its users an opportunity to make more profits and avoid unnecessary losses.

  • P2P Loan: The CoVEX platform also implementing a decentralized p2p lending service. This allows users across the world to receive loans in lesser time and even reduces the repayment fee while at the same time protecting the interests of the lender.

Payment Gateway & Pre-paid Card: CoVEX is an all-in-one cryptocurrency exchange that supports all cryptocurrencies and is also providing a crypto payments gateway. In order to propagate the blockchain technology further, this platform will provide merchants with a crypto payment gateway service. Merchants have the option to convert each payment they receive into fiat money or can also receive it in cryptocurrency.

CoVEX Pre-Paid Card will be providing the users with a prepaid card that can be used in any offline store that accepts card payments.

Conclusion:

The CoVEX trading platform essentially helps to satisfy all your trading needs. Being the only platform to be providing so many different features, it will certainly gain the support that it deserves. If you are looking for a new trading platform, you now have the perfect solution right in front of your eyes. By using CoVEX exchange, you get to access a plethora of powerful tools at one place. Thus, simplifying your journey through the crypto space.

Official Web Links:

Web: https://covex.io

Telegram: https://t.me/CoVEXplatform

Twitter: https://twitter.com/covexcoin

Facebook: https://www.facebook.com/covexcoin/

Reddit: https://www.reddit.com/user/polojoan/

Medium: https://medium.com/@covexcoin

Instagram: https://www.instagram.com/covexcoin/